Profit maximisation vs. agency: an analysis of charitable giving by UK firms

S Brammer*, A Millington

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

25 Citations (Scopus)

Abstract

The charitable giving of a large sample of publicly quoted UK firms is analysed within a model that explores the profit maximisation and managerial utility enhancement motives for giving. The empirical method draws a distinction between the decision to participate in giving and the determination of the amount of corporate contributions. Firm size and advertising intensity are found to be positively associated with the probability of participation in giving. Stricter corporate governance and the rate of directors' remuneration are negatively related to the probability of participation. Among givers, the rate of giving is related positively to R&D intensity, the rate of directors' remuneration, and corporate profitability and negatively to firm indebtedness.

Original languageEnglish
Pages (from-to)517-534
Number of pages18
JournalCambridge Journal of Economics
Volume29
Issue number4
DOIs
Publication statusPublished - 4 Jul 2005
Externally publishedYes

Keywords

  • corporate social responsibility
  • charitable giving
  • CORPORATE SOCIAL PERFORMANCE
  • CIGARETTE CONSUMPTION
  • OWNERSHIP STRUCTURE
  • PHILANTHROPY
  • HOUSEHOLDS
  • MEAT

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